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Is there any benefit if the bank direclty takes out monthly repayments for my mortgage from my offset account instead of savings account ? (aussie.zone)

submitted 5 months ago by yoz@aussie.zone to c/ausfinance@aussie.zone

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[–] Minarble@aussie.zone 1 points 5 months ago (1 children)

Pay your mortgage fortnightly not monthly.

Paying monthly vs fortnightly

As an example, imagine you take out a $400,000 loan for 30 years at an interest rate of 3.64%. Your monthly payments will be $1,827.58. Over the duration of the loan, the total amount you repay will be $657,931 including both principal and interest.

If you switch from monthly to fortnightly repayments, you’ll be paying an extra $1,827.58 each year. This will cut the time it takes to repay your loan by four years and ten months. You’ll also save $38,145 on interest charges.

[–] yoz@aussie.zone 2 points 5 months ago

Wow! That's great info. I'll get it changed to fortnightly. Thanks